Lincoln County Man Convicted Of Tax Charges
St. Louis, MO – PETER GIAMBALVO was convicted of obstructing the internal revenue laws and filing false tax returns for the years 2003-2010. The three-day trial was held before United States District Judge Rodney W. Sippel.
According to testimony presented at trial, Giambalvo was an employee of The Boeing Company and had not filed income tax returns for the years 2000-2009. After being contacted by an IRS Revenue Officer in late 2010, Giambalvo agreed to file income tax returns for those years. However, in January 2011, Giambalvo mailed tax returns to the Revenue Officer for years 2000-2010. Each of these returns stated that the amount of wages and other items of income which he received during those years was zero. However, for the years 2003-2010, there was evidence that Giambalvo received wages from The Boeing Company in amounts substantially in excess of the zero amounts reported on the returns. Giambalvo also included a letter to the Revenue Officer which claimed that he was a "nontaxpayer," and was not required to pay taxes because he worked in the private sector and not for the government.
"The law is clear on the issue of taxable income and who is required to file and pay taxes: There is no gray area on the subject," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Today’s conviction shows that those who willfully defy the tax laws, regardless of their motivations or convictions, will be held accountable.".
Giambalvo, Hawk Point, MO, was convicted of one felony count of interfering with the administration of the Internal Revenue laws, and eight felony counts of filing false tax returns. Sentencing has been set for January 2, 2015. After the jury verdict, Judge Sippel ordered that Giambalvo be held in custody until sentencing.
Each count carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.